Retirement expectations and realityA traditional retirement annuity or fund allows individuals to make tax-deferred investments so that when they reach a certain age, they may have the required financial security to retire. Typically, funds are invested in bonds, mutual funds, stocks and more. Due to the tax-deferred basis of retirement funds, they are a favourable option to growing one’s money over the long run as opposed to simply keeping cash available.
On average, South Africans save roughly R1.8 million for retirement in order to benefit from a R12 000 monthly pension income. Taking current annuity rates into consideration, future pensioners will be left with a capital shortfall of 22%. It is suggested that one requires an amount of R3.6 million to meet the above stated retirement expectations. Bjorn Ladewig from Just SA was quoted in an article stating that there is a major gap between expectation and reality of how much your retirement income will be.
Digital currencies such as Bitcoin, Ethereum and Ripple certainly have become more credible and attracted numerous investors who are looking to build a diversified portfolio.
One of the major reasons why cryptocurrencies are reliable is due to their advanced computing technology, the blockchain. Blockchain is a great invention! It is virtually unhackable, it is not affected by inflation and securely records transactions on its network. Blockchain technology enables fast and cost-effective cross-border payments.
For this reason, many investors hold a number of cryptocurrencies in their investment portfolio to defer any volatilities that may occur in the traditional financial market. It is said that Bitcoin and alt coins may experience a significant increase in the years to come due to the abovementioned reasons.
It is a fact that many companies/shops/retailers accept major cryptocurrencies as payment for goods and services by means of secure digital wallets. Cryptocurrencies are definitely not going anywhere but up.
In conclusion, retirement funds may suffer at the hand of politics and economic turmoil. On the other hand, cryptocurrency related investments like cryptocurrency mutual funds offer exciting investment opportunities. Talk to your financial advisor about the best way to diversify your investment portfolio or simply buy top cryptocurrencies on South Africa’s favourite crypto exchange, AltCoinTrader. AltCoinTrader offers more than 22 cryptocurrencies as well as Gold and Silver Krugerrands on a user-friendly platform.
You don’t need a degree in financial management to build your ideal investment portfolio. Stick to some basic rules to ensure financially security. Take control of your financial future, regardless of your age and start saving for retirement.
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